Adjusted Basis: Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.

 

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Adjusted Basis: The original cost basis of a property reduced by certain deductions and increased by certain improvement costs. The original basis determined at the time of acquisition is reduced by the amo . . . View Full Definition

Basis: Basis is the total cost of buying an investment or other asset, including the price, commissions, and other charges. If you sell the asset, you subtract your basis from the selling price to . . . View Full Definition

Fractional Basis: Each property in the improvement district is charged a prorated share of the total amount of the special tax assessment. The share is determined either on a fractional basis (four houses may . . . View Full Definition

Inflation-Adjusted Return: Inflation-adjusted return is what you earn on an investment after accounting for the impact of inflation. For example, if you earn 7% on a bond during a period when the inflation rate averag . . . View Full Definition

Formula Basis: The form required by the NASD to report equity transactions after the market's regular hours.

Interest Basis: The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share . . . View Full Definition

Modified Adjusted Gross Income (MAGI): Your modified adjusted gross income (MAGI) is your adjusted gross income (AGI) plus deductions, such as college loan interest and contributions to a deductible individual retirement account . . . View Full Definition

Fixed Price Basis: Payments of a fixed, equal amounts paid to an insurance company for insurance or an annuity.

Discounted Basis: The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: . . . View Full Definition

Depreciable Basis: In investment real estate only structures can be depreciated. The depreciable basis is the original basis less the value of the land.